Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/179181
Authors: 
Yang, Ger
Basanta, David
Piliouras, Georgios
Year of Publication: 
2018
Citation: 
[Journal:] Games [ISSN:] 2073-4336 [Volume:] 9 [Year:] 2018 [Issue:] 2 [Pages:] 1-38
Abstract: 
Small changes to the parameters of a system can lead to abrupt qualitative changes of its behavior, a phenomenon known as bifurcation. Such instabilities are typically considered problematic, however, we show that their power can be leveraged to design novel types of mechanisms. Hysteresis mechanisms use transient changes of system parameters to induce a permanent improvement to its performance via optimal equilibrium selection. Optimal control mechanisms induce convergence to states whose performance is better than even the best equilibrium. We apply these mechanisms in two different settings that illustrate the versatility of bifurcation mechanism design. In the first one we explore how introducing flat taxation could improve social welfare, despite decreasing agent 'rationality,' by destabilizing inefficient equilibria. From there we move on to consider a well known game of tumor metabolism and use our approach to derive potential new cancer treatment strategies.
Subjects: 
game theory
cancer
economics
hysteresis
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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